Support, Resistance (SPX S/R), Moving Averages and Other Important Levels for Trading the Week of 6/16/14

SPX support, resistance (S/R), moving averages and other important levels are provided for trading the week of 6/16/14. Levels shown in bold are strong resistance and support. Bold and underlined levels are very strong and important S/R. The SPX prints new all-time highs above 1950. The bulls create a strong upside three-week rally running from 1860 to almost 1960, nearly 100 handles, +5%. Stocks pull back during the middle of the week last week but bounce again on Friday.

The SPX needs to back test the 20-day MA at 1918.07, and rising, and each day that passes this need increases. This is also the center band of the standard deviation bands which needs touched since price has violated the upper band. The 1923 is very strong support so if that fails a test of the 20-day MA is guaranteed. In a day or two the 20-day will be at the strong 1923 support which would set up an important bounce or die price test from this confluence.

The 8 MA is below the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead, however, the 8 MA is 1934.46, the 34 MA is 1936.39 and price is 1936.16, so the bulls may be able to create a positive 8/34 cross, and, if so, the bears will fold like a cheap suit. The bears must maintain the negative 8/34 cross on the 30-minute and this will be tested tomorrow morning. Bulls will win if price remains at 1936 moving higher. Bears will win if price drops below 1934 and moves lower.

The SPX is above the 200 EMA on the 60-minute at 1909.97 signaling bullish markets for the hours and days ahead. This multi-day indicator shows the bulls remaining in control. The market bears need to push price under 1910 to signal sustainable and extended downside selling. In general, bulls are fine above 1910.

For the SPX for Monday starting at 1936, the bulls only need one point higher, to push up through 1937 and price will quickly accelerate to the moderate resistance levels at 1940 and 1942. A push through 1942 sends price higher to test the strong 1949 resistance. Watch to see if the S&P futures are positive overnight, if so, the bears are in trouble.

The bears need to push the SPX under 1928 to accelerate the downside. There is a confluence of support at 1923-1929. If price loses 1928, the test of the critical 1923-1924 support occurs next. The 20-day MA will likely be up towards this 1923 level at that time as well. The bounce or die decision from 1923-1924 will be extremely important. Failure at 1923-1924 will send price to 1910-1912 for another critical support test that determines the sustainable and extended path forward for markets. This is why bulls remain fine above 1910-1912. Below 1910-1912 is where the bears take firm hold of the markets. Failure at the 200 EMA at 1910 will quickly send price into the 1800's. A move through 1929-1936 is sideways action to begin the week.

Markets may idle sideways until the FOMC Rate Decision, Forecasts and Press Conference on Wednesday starting 2 PM EST. Fed Chair Yellen will take Q&A after she reads the tablets brought down from on high telling the markets how to trade. The Fed, BOJ and other central bankers are the market. Housing Starts on Tuesday morning are very key. Equities may create a major market pivot point on Wednesday afternoon which creates a multi-day and multi-week path forward.

1956 (6/9/14 All-Time Intraday High: 1955.55) (6/9/14 Intraday High for 2014: 1955.55)

1955.55 Previous Week’s High

1951 (6/9/14 All-Time Closing High: 1951.27) (6/9/14 Closing High for 2014: 1951.27)

1950

1949

1947

1945

1942

1940

1937.30 Friday HOD

1936.16 Friday Close – Monday Starts Here

1936

1931

1929

1928

1927.69 Friday LOD

1926

1925.78 Previous Week’s Low

1925

1924 (5/30/14 Intraday Top: 1924.03) (5/13/14 Closing High: 1923.57)

1923.57 June Begins Here

1923

1920

1919

1918.07 (20-day MA)

1917

1914

1912

1910

1909.97 (200 EMA on 60-Minute Chart a Keystone Market Turn Signal)

1907

1902 (5/13/14 Intraday Top: 1902.17)

1901

1897 (5/13/14 Closing High: 1897.45) (4/4/14 Intraday Top: 1897.28)

1894

1891 (4/2/14 Closing High: 1890.90)

1889

1888.75 (50-day MA)

1886

1885

1884 (3/21/14 Intraday Top: 1883.97) (3/7/14 Intraday Top: 1883.57)

1882

1880

1879

1878 (3/7/14 Closing High: 1878.04)

1877

1874

1872

1871

1868

1867

1865.67 (20-week MA)

1865

1862.60 (100-day MA)

1862

1859

1855

1853

1852

1851 (1/15/14 Intraday Top: 1850.84)

1849 (12/31/13 Intraday High Top for 2013: 1849.44)

1848.36 Trading for 2014 Begins Here

1848 (1/15/14 Closing High: 1848.38) (12/31/13 Closing High for 2013: 1848.36)

1846

1845

1844.75 (150-day MA; the Slope is a Keystone Cyclical Signal)

1843

1842

1841

1840

1839

1838

1837

1835.03 (10-month MA; a major market warning signal)

1835

1832

1831

1828

1827

1824

1820

1816

1814 (11/29/13 Intraday Top: 1813.55)

1812 (12/9/13 Intraday Top: 1811.52)

1810

1809.93 (200-day MA; not tested for 19 months extremely odd behavior)

1809 (12/9/13 Closing Top: 1808.37)

1808

1807 (11/27/13 Closing Top: 1807.23)

1806

1805.75 (12-month MA; a Keystone Cyclical Signal) (the cliff)

1803

1801

1800

1799 (11/18/13 Intraday Top: 1798.82)

1798 (11/15/13 Closing Top: 1798.18)

1796

1793

1791

1789.79 (50-week MA)

1788

1785

1783

1782

1781

1777

1775 (10/30/13 Intraday Top: 1775.22)

1772 (10/29/13 Closing Top: 1771.95)

1770

1768

1763

1762

1759

1756

1752

1748